Game news Despite more than 35 million dollars already raised, this video game studio is the subject of a new financing campaign. Is this normal?

Game news Despite more than $35 million already raised, this video game studio is the subject of a new financing campaign. Is this normal?

Stormgate: bringing real-time strategy to life outside of Blizzard

Over the past 10 years, many developers who spent many years at Blizzard have left, launching here and there new projects very marked by their experience. Frost Giant is one of those studios whose ambition is to bring the spirit of “old Blizzard” to life through new licenses. During Summer Game Fest 2022, this young studio created by veterans has unveiled Stormgate, a real-time strategy game set in a world mixing science fiction and Stormgate.

We are promised a narrative developed over several years, in-depth strategic gameplay, and different ways to approach the game in solo or multiplayer. Nearly two years after its announcement, Frost Giant has already raised $35 million from various investors, and obtained An additional $2.3 million through a crowdfunding campaign on Kickstarter. Obviously, this is not enough, because the studio is preparing to launch a new campaign, not crowdfunding, but investment.

The initiative is not expected to begin until next month, but a page has already been opened on StartEngine in order to “test the waters” and allow interested people to reserve a place. We are talking about the possibility to buy shares of the company, with 5% bonus for pre-registered people. By participating, interested people will therefore not necessarily obtain the game, in-game bonuses, a specific edition or various rewards. A warning is also present on StartEngine, as PC Gamer indicates:

Any investment is speculative, illiquid and involves a high degree of risk, including the possible loss of your entire investment.

But why did Frost Giant choose this option to strengthen its finances for the release of Stormgate? The idea is not only to ensure that this particular game sees the light of day and benefits from sufficient communication, but to find people interested in the long term. For Gerald Villoria, communications director at the studio, justified the existence of the Kickstarter campaign by the cost of developing an ambitious game:

Budgets for modern AAA games are often measured in the hundreds of millions, and that’s not counting marketing budgets. So while $35 million may seem like a lot of money, it’s nothing compared to what the biggest studios are spending. What our funding didn’t cover were many of the extras and special equipment that are only possible with large publishing budgets. (…)

Ensuring the future and the choice of self-publishing: the bet of Frost Giant Studios

As for this participatory investment campaign, it is born to avoid the worry linked to recent industry news, marked by gigantic profits and more than 9,000 layoffs in 2023. Frost Giant has chosen self-publishing and therefore finds itself in the fragile position of having to succeed in order to consider the future. Having numerous small investors, who come to support large rounds of funding, would give us some fresh air.

Major publishers (lay off) hundreds of video game workers seemingly every day and make decisions that prioritize short-term profits over the happiness of workers and players… We choose to control our own destiny and to self-publish our game in the West with the direct support of our community of players.

It remains to be discovered whether the public will answer the call during the official opening of the campaign, and to see if Stormgate is successful when it launches in Early Access during the third quarter. There is hope, given that Stormgate had a demo that was one of the most played during the recent Steam Neo Fest alongside Pacific Drive, Homeworld 3, Balatro and Backrooms.